Best Low Duration Debt Mutual Funds

Let us first understand Low Duration Debt Mutual Funds. Individuals and Institutions raise debt when they need money, and
pay interest based on the interest rate and duration of the debt. The interest rates can fluctuate
based on the economic scenario.

These funds invest in short term (one year) bonds. If you are saving for very short-term goals like a vacation or buying an automobile, then this category is ideal for gains within one year. It is also an excellent resort to park your money until you decide where to invest or spend next. Returns are taxed as per your income tax slab if sold before three years and have negligible tax post that period.

Purpose: Invest here for your short term goals like a vacation, buying a bike, jewelry or expensive gadget.

Let's have a closer look

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.66% annualized returns in the last 3 years. In the last 1 year, it gave 8.31% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.31% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.99% annualized returns in the last 3 years. In the last 1 year, it gave 7.6% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.6% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.3% annualized returns in the last 3 years. In the last 1 year, it gave 8.31% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.31% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.93% annualized returns in the last 3 years. In the last 1 year, it gave 7.01% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.01% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 7.51% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.51% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.63% annualized returns in the last 3 years. In the last 1 year, it gave 7.8% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.8% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.68% annualized returns in the last 3 years. In the last 1 year, it gave 7.26% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.26% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.92% annualized returns in the last 3 years. In the last 1 year, it gave 7.56% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.56% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.91% annualized returns in the last 3 years. In the last 1 year, it gave 7.84% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.84% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.89% annualized returns in the last 3 years. In the last 1 year, it gave 7.6% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.6% returns in the last 1 year. Groww rated this fund as 3 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.27% annualized returns in the last 3 years. In the last 1 year, it gave 7.59% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.59% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.92% annualized returns in the last 3 years. In the last 1 year, it gave 7.96% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.96% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.9% annualized returns in the last 3 years. In the last 1 year, it gave 7.97% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.97% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.12% annualized returns in the last 3 years. In the last 1 year, it gave 7.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.95% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 7.77% annualized returns in the last 3 years. In the last 1 year, it gave 7.62% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.62% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Krishna Venkat Cheemalpati, Nitish Sikand

Launch Date

31 Dec 2012

Min Investment Amt

₹5,000

Groww Rating

2star

AUM

₹548Cr

1Y Returns

7.6%

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What are Low Duration Debt Mutual Funds?

Debt funds are mutual funds investing in such debt instruments. They are of different kinds
depending on the kind of debt instruments they invest in.
Higher the credit rating of the debtor, lesser the chance of default and hence lesser the risk is –
however, returns for such instruments can be lower. Lower the duration of the debt, lesser the
probability of interest rate fluctuation and hence lesser the uncertainty of returns.

Who issues Low Duration Debt mutual funds?

Asset management companies (or AMCs or fund houses) create mutual funds. All
AMCs will have to be approved by the government body, Securities and Exchange Board
of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the
public to invest.

How to invest in low duration debt mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased
approach, also known as Systematic Investment Plan (SIP) approach. We are sure that
you must be aware of SIP and its benefits. Buying in small quantity but buying regularly
provides you with faster growth.
On Groww.in, all transactions to and from AMC is done via BSE.
When you decide to invest in a large cap mutual fund of your choice, you choose that
mutual fund on the website and click ‘invest’. Following that, you are redirected to the
BSE page where you make the payment. BSE then directs your money to the AMC
managing your mutual fund.
To be assured at your end, you can visit the individual AMC website after the payment.
You would be able to see all your purchased units against your folio number.

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.